Middle East and Africa Coffee Market Synopsis
Middle East and Africa Coffee Market Size Was Valued at USD 774.23 Million in 2022, and is Projected to Reach USD 1,040.99 Million by 2030, Growing at a CAGR of 3.77% From 2023-2030.
Coffee is a sort of beverage that's made through the use of roasted espresso beans. It seems darkish in shade and tastes sour and fairly acidic. Coffee has a clean impact on its consumers, and that is in particular because of its caffeine content. It has the most important sale with inside the worldwide marketplace for warm drinks.
- The Middle East and Africa have seen significant growth in their coffee markets over recent years. Both regions have a rich cultural heritage centered around coffee consumption, with traditional coffee houses being a focal point of social interaction. In the Middle East, countries like Turkey and Saudi Arabia have a long-standing tradition of coffee consumption, and there's a growing trend towards specialty coffee among younger generations. Africa, being the birthplace of coffee, has seen a surge in both production and consumption, with countries like Ethiopia and Kenya gaining recognition for their high-quality beans.
- The specialty coffee segment is gaining traction, with a rise in artisanal coffee shops offering unique blends and brewing methods. This shift reflects changing consumer preferences and a growing demand for higher-quality coffee experiences.
- In Africa, coffee production continues to thrive, and there's an increasing focus on sustainability and fair-trade practices. Countries like Ethiopia and Kenya are renowned for their Arabica beans, prized for their distinctive flavors. However, challenges such as climate change and fluctuating market prices persist, affecting smallholder farmers' livelihoods and the overall coffee industry.
Top Key Players Involved Are:
"Boncafe Middle East, Medcafe and Roastery, Misr International Coffee Company, Orbis Coffee Roasting Company, Ethiopia Kaffa Coffee, Miko Coffee, SeyCafe’s, Coffee Bros, Raw Bean Roasters, Circle Coffee, BunaBuna Coffee, Mombasa Coffee, Beka Coffee, Ethiopia Kaffa Coffee, Oromia Coffee Cooperative Union"
Middle East and Africa Coffee Market Trend Analysis
Growing Cafes Culture Among Young Population
- The Middle East region has been a significant consumer of coffee for many centuries but there is a recent trend growing thrust for a specialty store in this region. Nowadays, consumers are keenly looking for certified coffee products to ensure about the credibility of their coffee purchases thus, they prefer consuming coffee in specialty coffee shops. Having more coffee choices and fewer restrictions in selecting the best coffee are helping in the opening of specialty stores in the region. Regional coffee shops could see a significant profit increase by upgrading the quality of coffee as consumers are interested in drinking coffee made from a specific origin. With an increase in consumer behaviour towards an appreciation for good-quality coffee and desire for the sophisticated coffee taste profile is further helping the coffee market to grow during the forecast period.
- Furthermore, in Middle Eastern countries such as in UAE, Bahrain Oman the café culture has increased as people prefer drinking coffee in cafés which is intrinsically linked to the demand for specialty coffee wave in the region thus, it droves the growth of the coffee market in the region.
Promotion of Fair Trade and Sustainability
- The promotion of fair trade and sustainability in the coffee industry has become a pivotal focal point globally, especially in regions like the Middle East and Africa. Initiatives aimed at fostering fair trade practices, empowering local coffee farmers, and adopting environmentally friendly cultivation methods are gaining traction. Certifications such as Fair Trade and Rainforest Alliance have evolved beyond mere labels; they've become symbols of commitment to ethical production and environmental stewardship.
- These certifications not only assure consumers of a product's ethical origins but also serve as powerful marketing tools for companies. By adhering to these standards, businesses can align themselves with consumer values, establishing trust and loyalty among ethically conscious buyers. Moreover, these certifications often enable farmers to command better prices for their produce, providing them with more stable incomes and improving their livelihoods.
- The success of fair trade and sustainability initiatives relies on multi-level collaborations. Organizations, including NGOs, government bodies, coffee cooperatives, and private enterprises, work in tandem to promote fair trade principles, educate farmers about sustainable practices, and facilitate access to certification programs.
Middle East and Africa Coffee Market Segment Analysis:
Middle East and Africa Coffee Market Segmented on the basis of Product Type, Variety, and Distribution Channels.
By Product Type, Instant Coffee segment is expected to dominate the market during the forecast period
- Instant coffee offers unparalleled convenience. It's quick and easy to prepare, requiring only hot water to make a cup of coffee. This appeals to consumers who lead busy lives and value convenience in their daily routines. Instant coffee has a significantly longer shelf life compared to fresh coffee beans or ground coffee. This makes it a practical choice for consumers who want a longer-lasting supply without worrying about the coffee going stale. Instant coffee is widely available and accessible across the globe.
- Its presence in supermarkets, convenience stores, and online platforms makes it convenient for consumers to purchase regardless of their location. In the Middle East and Africa, the burgeoning growth of the instant coffee market stems from a confluence of cultural, economic, and lifestyle factors. Firstly, the region's traditional tea-centric culture is gradually embracing coffee, and instant coffee, with its convenience, is bridging the gap. The quick preparation aligns well with fast-paced urban lifestyles, where consumers seek efficient solutions amidst bustling daily routines.
- Economic factors play a pivotal role. Instant coffee's affordability compared to freshly brewed coffee appeals to a wider demographic, allowing individuals across different income brackets to indulge in the coffee culture without stretching their budgets. This affordability makes it a more accessible choice, contributing significantly to its market growth.
By Variety, Arabica segment held the largest share of 70% in 2022
- Arabica coffee, known for its superior quality and distinct flavor profile, has been gaining significant traction in the market. Its popularity stems from a combination of factors, primarily its delightful taste characterized by nuanced acidity, pleasant sweetness, and varied aroma notes, ranging from fruity to floral. This species of coffee plant thrives in higher elevations with specific climatic conditions, making it more challenging to cultivate compared to its counterpart, Robusta coffee.
- Arabica coffee has solidified its dominance in the Middle East and African market owing to several key factors. its superior taste profile stands out prominently. With a smoother, more aromatic, and nuanced flavor compared to its counterpart, Robusta, Arabica beans offer a more refined and enjoyable coffee experience. Middle East and African consumers, renowned for their discerning palates and appreciation for quality, are drawn to Arabica for its rich and flavourful taste, elevating their coffee rituals.
- Arabica beans aligns with the burgeoning café culture across Middle East and Africa. As specialty coffee shops and artisanal roasters gain traction, there's a growing emphasis on offering high-quality, specialty-grade coffee to enthusiasts. Arabica's inherently superior taste and its potential for diverse flavor profiles when grown in different regions align perfectly with the Middle East and African market's quest for unique and exquisite coffee experiences.
Middle East and Africa Coffee Market Regional Insights:
Ethiopia is Expected to Dominate the Market Over the Forecast period
- Ethiopia is considered the birthplace of coffee. Legend has it that a goat herder named Kaldi discovered coffee when he noticed his goats becoming more energetic after consuming coffee berries. This historical connection gives Ethiopia an unparalleled heritage and authenticity in the world of coffee, elevating its status in the global market.
- Ethiopia boasts diverse microclimates and altitudes ideal for cultivating coffee beans. The country's highlands offer the perfect conditions for Arabica coffee, prized for its superior quality and distinct flavor profiles. The regions of Sidamo, Yirgacheffe, and Harrar produce some of the world's most sought-after and unique coffee beans, captivating coffee enthusiasts with their rich aromas and nuanced tastes.
- Ethiopia's coffee production is deeply embedded in its culture and traditions. Coffee ceremonies are a significant part of Ethiopian social life, symbolizing hospitality and community bonding. This cultural reverence for coffee elevates its significance beyond just a commodity, fostering a strong connection between the people and their cherished beverage.
Middle East and Africa Coffee Market Top Key Players:
- Boncafe Middle East
- Medcafe and Roastery
- Misr International Coffee Company
- Orbis Coffee Roasting Company
- Ethiopia Kaffa Coffee
- Miko Coffee
- Coffee Bros
- Raw Bean Roasters
- Circle Coffee
- BunaBuna Coffee
- Mombasa Coffee
- Beka Coffee
- Ethiopia Kaffa Coffee
- Oromia Coffee Cooperative Union
Key Industry Developments in the Middle East and Africa Coffee Market:
In October 2023, SeyCafe's Direct Trade Partnership This young Ethiopian company partnered with a Seattle roaster to launch a unique "farm-to-cup" subscription box. Customers receive single-origin Ethiopian coffees directly from the farm, supporting smallholder farmers and offering unparalleled traceability.
In April 2023, Raw Bean Roasters Goes Organic Committed to sustainability, Raw Bean Roasters transitioned their entire coffee range to certified organic beans. This marked a significant step in South Africa's specialty coffee scene, promoting ethical sourcing and environmental responsibility.
Middle East and Africa Coffee Market
2017 to 2022
Market Size in 2022:
USD 774.23 Mn.
Forecast Period 2023-30 CAGR:
Market Size in 2030:
USD 1,040.99 Mn.
By Product Type
- Whole Bean Coffee
- Ground Coffee
- Instant Coffee
- Coffee Pods
By Distribution Channel
- Middle East & Africa (Turkey, Bahrain, Kuwait, Saudi Arabia, Qatar, UAE, Israel, South Africa)